General

Nepal's foreign affairs are conducted in a balanced and pragmatic way, as its geopolitical position demands a fairly faithful adherence to the policy of non-alignment. Its economy is dependent on a sizeable amount of foreign aid and also its single largest foreign exchange earner, tourism. External relations have become far more complex in recent years as the major powers in the region, namely, India, China and Russia, have taken a keen interest in the affairs of this Himalayan kingdom, with the obviously watchful eyes of the USA and its allies felt in various ways.

An instance of Nepal's dependence on the external factors quite outside its control is the sheer geographical fact that it is a landlocked state dependent on numerous trade treaties with its immediate neighbors.

In 1989 the trade and transit treaties with India expired and only two trade and transit points along Nepal's southern border were kept open after the failure of negotiations on a new treaty. However, the dispute was settled in 1990 when the two countries agreed to revert to the status quo ante, but not before the Nepalese people had faced for a short while severe economic shortages. The treaty was denounced by Nepal in 1991 as being biased in India's favour and once again a cloud of uncertainty hovered over India-Nepal relations. The visits of the Indian Prime Minister to Nepal in late 1992 helped sort out the problem. The recent visit of King Birendra of Nepal to India in early September 1994 has further strengthened India-Nepal relations with a good economic fall-out for Nepal in the way of a saving of Rs.500 million trade's concessions. In the following section attempt is made to analyse the regional and sub-continental perspective of Nepal.

International Policy

Nepal's foreign policy is an outcome of its geopolitical compulsion. In King Birendra's words, 'it is dictated by the need for security and survival', which is reflected in the country's efforts towards maintaining friendly relations with both of its neighbors- India and China. King Prithvi Naryan Shah, the founder of modem Nepal, viewed the country as 'a flower blossoming between two rocks; and the 'two rocks'-India and China-have weighted quite heavily in 'taking any decision in foreign affairs.' Its location, between two expansive neighbors, has colored its relationship to the rest to the world. The Nepalese approach to foreign relations is thus guided in the main by the three important considerations of:

• security,
• stability, and
• status.

In his first public address on the nineteenth day of his accession to the throne, King Birendra reiterated the desire to adhere to the foreign policy of non-alignment; he assured its preservation. Nepal, the King stated, would not harbour any ill-will against any country, but would maintain friendship with all, endeavours would be made to strengthen ties to co-operation with all nations and he expressed the hope that Nepal's friends would understand the country's aspiration-to live and let live.

The policy of non-alignment, upheld by the late King Mahendra, remained Nepal's basic principle in its international dealings during the years of King Birendra's rule. Delicate situations had to be dealt with: the test at times was severe: suspicions arose: the love-hate relationship with its close neighbours intensified. The policy was hailed for its foundation built on the doctrine of equi-distance. If Nepal's assertiveness was commented upon as being a projection of its identity-crisis, it was also justified as the product of a national need for stability.

Nepal's participation in the historic Bangdung Conference of 1955 led not only to a significant link with China but also acted as a base for its international relations within the new code of conduct stated in the five principles of the Panch Sheel. Since then, Nepal has adhered to the principles of non-interference and co-existence. Later, in 1955, Nepal established diplomatic relations with China on the basis of these principles, the boundary agreement signed with China in 1961-being one example. The age-old relations between Nepal and India have also been defined within the context of the new ethics of the Panch Sheel.

At the first summit conference of non-aligned countries in Belgrade in 1961, King Mahendra pointed out Nepal's opposition to colonialism and interference in the internal affairs of others. He pleaded the need for international cooperation in the economic field for letting the underdeveloped countries share the benefits of the technologically advanced countries. Pursuing the policy of co- existence between stakes with different political and social system was agreed upon. Itself a developing country, Nepal has advocated the need for helping other emerging countries in their efforts for national economic uplift. It was in conformity with this spirit that at the Geneva Convention for Development and Trade in 1964, Nepal stressed the desire to developed nations to import more goods from the developing ones. As a country handicapped by a lack of diversification in trade-on account of being land-locked-Nepal advocated in Lusaka for the full and unrestricted transit rights to and from the sea for other land-locked countries.

The leadership of the Kingdom came in the hands of King Birendra in 1972: the foreign policy of Nepal remained intact. Its security and survival continued to constitute basic factors of consideration for Nepalese foreign policy. The yam between two huge boulders, as Nepal was metaphorically described by King Prithvi Naryan Shah, retained peace, harmony and friendship with its neighbors, with occasional overtones of assertiveness coming from the government. Faith was kept well bedded in the principle that peace is preferable to war, friendship pays more dividends than conflict. However the period did contain diplomatic inclemency at times.

King Birendra, in his first enunciation of the Kingdom's foreign policy about eighteen months after ascending the throne, underlined some points of political interest. Firstly, he stated the need for further reinforcement of the spirit on non-alignment. Secondly, the Nepalese foreign policy was said to have a bearing on aspirations for peace security and economic development at home. Co-operation and reciprocity from nations and neighbors were considered important. The least point of interest in his speech was the emphasis he placed on the need for courage; and he implicitly counselled preparedness for 'independence of nothing'. In his words:

"We shall take special pains to cultivate friendship with our neighbors hoping earnestly that peace, cooperation and an understanding based on a sober appreciation of each other's problems and aspirations shall prevail. Nowithstanding these fervent pleas, notwithstanding this sincere expression of goodwill, notwithstanding these endeavours, should ill-fortune ever overtake us, I hope and pray that the people of Nepal shall not lag behind to brace themselves with the last resource they have-courage; courage to prove to the world that force or contrivances are but feeble instruments to subdue the fierce spirit of a people whose lifeblood, through the ages, has been independence or nothing."

The statement was interpreted as being an indication of the firmness with which Nepal was going to deal with its neighbors. It was also interpreted as being a barometer for the tensions which were incipient. However, the implications contained in core content of the exhortation, 'independence or nothing' baffled many. With raised eye-brows, questions like 'why was it found necessary at this juncture to stress the obvious in Nepal's foreign policy? Were being asked in some circles. The official explanation contained a suggestion that 'Nepal's foreign policy was that of 'strict non- alignment' and 'friendly relations with ally.5 It was emphasised that 'the King's speech was not directed towards any particular country'.

King Birendra looked at Nepal's foreign relations with an eye on specific issues at home. He explained that non-alignment in decision-making and interdependence in matters of co-operation have been Nepal's cherished principles. He has made it clear that Nepal wants co-operation for its peaceful development. Aware that bias and petty interests at times impede the flow of co-operation, he stressed at Algiers that the right for a country to live in its own way, the way which was best for itself, should be permitted. King Birendra said, 'if co-operation is not possible, co-existence becomes a vital necessity.' While supporting the United Nation's initiative to codify the law concerned with exploring and exploiting resources of the sea-bed, ocean-floor and sub-soil, he endorsed the proposal to establish an international machinery to ensure an equitable sharing of sqch resources lying beyond the limits of national jurisdiction. In view of the handicaps experienced by the land-locked countries concerning transit and port facilities he urged the coastal countries to make special provisions guaranteeing right to free and unrestricted access to and from the sea. When he looked at the problems of the developing nations, he felt that the less developed countries suffered from greater disadvantages than the other members in that category and that their difficulties needed to be analyzed. They deserved greater attention and more help. The pattern of international relations has changed, and is still changing. In the fluidity of a relationship, a colony become a coloniser and new builders of empires appear.

Countries which yesterday were the victims of aggression could transform themselves to masters of domination. Hither- to poor countries which succeed in realising their economic potential may practise a policy of exploitation. In this context the relevance and meaning of non-alignment . . . are often questioned.

He urged that the principles of non-alignment should protect the weak from the strong, the advocates of peace against war- mongers, and eventually free the poor from the grasp of the rich.

At a farewell reception organised in connection with his coronation King Birendra, in an address to world dignitaries, some of whom were Presidents, Vice-presidents, Princes and Ministers, made a proposal of considerable significance that 'Nepal be declared a Zone of peace'. He argued that despite being able to build more roads and bridges, constructing more schools and factories, and generating more electricity, Nepal lagged being in the world endeavour for development. The urgency with Nepal which strove for economic uplift was, and still is, unique. He said:

As heirs to one of the most ancient civilizations in Asia, our natural concern is to preserve our independence . . . a legacy handed down to us by history. The absence of peace will delay. Make more difficult and even deform our develop- ment . . . I can assure that Nepal harbors no ill-will or any unfriendly feeling toward any country in the world . . . If our relations with India have been deep and extensive our relations with China have been equally close and friendly, consistently marked by understanding of each other's problems and aspirations.

We adhere to the policy of non-alignment because we believe that it brightens the prospect of peace. We need peace for our independence and we need peace for development. It is with this earnest desire to institutionalize peace that I stand to make a proposition . . . a proposition that my country, Nepal be declared a zone of peace . . . We believe that only under a condition of peace will we be able to create a politically stable Nepal with a sound economy ....."

Though based on the need for peace, security, independence and development, the proposition to many was vague. Analysis, explanation and a clear framework of the proposal were sought later. It also stirred debates in various circles-both at home and abroad. The members of the establishment bore a look of satisfaction which private citizens looked uncertain about its implication. Thus both support and reservation characterized foreign reactions to the proposal.

In tune with the conventions set by the late King Mahendra, who had led Nepalese delegations to all the summit conferences of the non-aligned nations held within his life time, King Birendra also led his delegation to the Colombo Summit Conference in 1976. At Colombo, he stressed the need of the Conference to look into the problems of landlocked countries like Nepal, which happened to be the least developed among the developing nations. He argued that non-alignment would lose its value and relevance in the case of some becoming more prosperous than others. He said that this was not time to live under somebody else's umbrella. He emphasized the need of non-alignment in the Asian region resulting in harmony and greater understanding. Explaining his proposal to declare Nepal a 'Zone of Peace' King Birendra said, "when free from turmoil or turbulence we can work out our future in peace and freedom". Nepal never did want a situation that gave room for tension, fear or anxiety about instability.

On all occasions, King Birendra advocated the policy of non- alignment in a global context. It has now become a force in reducing tension between the power blocks.

Source: Nepal International Perspectives (T.R. Vaidya & B.R. Bajracharya)

Overall

Nepal's foreign policy objectives are guided by the principles in the Charter of the United Nations and the Non-alignment. As such, Nepal enjoys cordial relations with all the countries of the world. This is also manifested by the expansion of the diplomatic relations, which has reached 113 countries by 1999. Through 18 residential embassies, 4 consulates, and numerous honorary consul generals/consuls abroad, Nepal is striving to consolidate bilateral and multilateral relations with the friendly countries and international organisations. Meanwhile, 22 embassies, consulates, cooperation offices, country representatives of various international organisations including the UN, World Bank, IMF and ADB based in Kathmandu have equally made significant contributions to help achieve these goals.

Nepal attaches considerable importance to the promotion of closer economic cooperation in South Asia. To this end, Nepal is actively working with other members of SAARC for the creation of the South Asian Free Trade Area (SAFTA) and is also engaged in the sub regional cooperation in the form of South Asian Growth Quadrangle (SAGQ). Nepal is the host of the SAARC Secretariat.

Economic diplomacy has acquired yet another significant dimension of Nepal's foreign policy priorities in recent years. Its main objectives are to promote Nepal's export trade, attract greater number of tourists to Nepal, and to enhance the flow of foreign direct investment in the economy.